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Financial News

Jan 2011 Financial News

Notice to Shareholders -TCL Group Debt Restructuring

Jan 17, 2011

The following Notice to Shareholders was received from Trinidad Cement Limited:

TCL Group Debt Restructuring – Status Update

In the Directors’ Statement accompanying the publication of Trinidad Cement Limited’s consolidated interim financial report for the nine months ended September 30th, 2010, shareholders and other stakeholders were advised that the Group was undertaking a debt restructuring exercise.

As indicated, the Debt Restructuring is being undertaken to allow the Group’s operations to be funded from the lower income streams resulting from the severe effect of the current economic decline in all our markets.

The approach being taken to the exercise is as follows:

- A Creditor Committee comprising large domestic and international institutional lenders representing 75% of the TCL Group’s total debt, has been established.

- Hiring of an independent advisor to the Committee to assess the cash generating capability, operations and structure of the TCL Group.

- TCL, the Committee, and the advisor, to discuss a revised business plan and to negotiate a restructuring of the company’s debt portfolio.

- TCL, in coordination with the Committee along with its advisor, will present for approval the debt restructure plan to its lenders and investors.

It is expected that this exercise will continue until the debts are restructured, during which time the Group will declare a moratorium on debt service payments (both principal and interest) in order to preserve cash to sustain operations.

The Debt restructure is intended to improve the Group’s long term prospects and provide for the full repayment of its indebtedness. The process outlined above is fully supported by the major lenders since it will facilitate the TCL Group’s efforts to sustain itself and its operations over the current low level of the economic cycle.

It is expected that the Company and all its investors will benefit from the restructuring exercise which will result in a stronger TCL Group.

TCL Board of Directors

January 14, 2011

The Trinidad and Tobago Stock Exchange Limited
Monday January 17, 2011